By Suzanne Herel

VALLEY FORGE, PA — Two competing transmission developers are challenging PJM’s selection of Dominion Resources and FirstEnergy to resolve reliability problems near Pratts, Va. (See Dominion, FirstEnergy Recommended for Pratts Solution.)

ITC Holdings and Northeast Transmission Development sent PJM letters questioning the decision and arguing in favor of their own proposals.

In its letter, dated March 24, Northeast Transmission, a unit of LS Power, said the two proposals it submitted are more efficient and cost-effective than PJM’s choice.

“NTD does not believe that PJM appropriately considered the cost cap provided by NTD relative to cost ‘estimates’ for alternative proposals,” it said.

It also asked PJM to consider two project combinations, either of which it said would save an estimated $28.8 million to $58.8 million and provide cost containment. One of the combinations also would offer reduced risk through use of an existing right-of-way, the company said.

ITC’s letter, dated April 7, called on PJM to reconsider its proposal, which it called “nearly identical” to the one from Dominion and FirstEnergy.

“To resolve this issue equitably, and ensure the evaluation of proposals on an even playing field, we request the PJM perform additional analysis to compare the ITC proposal with the Dominion-FirstEnergy proposal before making a recommendation to the PJM board.”

Four developers suggested 16 proposed solutions, but PJM concluded only six of the proposals solved the violations. PJM said the Dominion-FirstEnergy proposal was selected in part because the companies own the substations involved and most of the rights-of-way required. In addition to project risk, PJM said it considered performance and cost-effectiveness in its selection.

Paul McGlynn, PJM general manager of system planning, told the Transmission Expansion Advisory Committee that planners will review the competitors’ letters and consider changes to their recommendation “if they are in fact warranted.”

McGlynn said planners will return the issue to the TEAC for another discussion before making a final recommendation to the PJM board.

Sharon Segner, a vice president for LS Power, questioned why the Dominion-FirstEnergy proposal should receive a preference for owning substations and rights-of-way when any developer selected would be able to invoke eminent domain to acquire needed land. She added later that Virginia has established precedent that new entrants can obtain public utility status.

“You’re certainly entitled to your opinion,” McGlynn responded.

Segner also said PJM should consider identifying the top three or four most important criteria it will consider when it issues future competitive solicitations, as she said is the practice in CAISO’s Order 1000 process.

McGlynn said performance, cost effectiveness and risk will always be top priorities although their relative weighting may vary from project to project.